CONVEYANCING TRANSFORMED END TO END E …...•A new all-in-one online duties form will be mandatory...
Transcript of CONVEYANCING TRANSFORMED END TO END E …...•A new all-in-one online duties form will be mandatory...
CONVEYANCING TRANSFORMED | END TO END E-CONVEYANCING HAS ARRIVED
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All-in-one online duties form
Conveyancing Transformed
April/May 2017
• Slide 3 Digital relationship with customers
• Slide 5 Current State / Background
• Slide 6 Project overview
• Slide 7, 8 Drivers for VPT
• Slide 9, 10 Key Features
• Slide 11 Consolidated forms
• Slide 12 Existing Process
• Slide 13 Process Map
• Slide 14 Implementation
• Slide 15-29 VPT preview
• Slide 30 Benefits
• Slide 31 – 34 Housing affordability initiatives
Agenda
Digital relationship with customers
• Over the last 6 years the SRO has systematically worked towards changing the way the conveyancing industry and taxpayers do business with the SRO in the Land Transfer Duties space.
• A once heavily manual and paper based revenue line is now almost completely administered electronically via DOL
Major milestones
• DOL launch - Oct 2011
• Electronic Payment options
• Electronic lodgment capability for complex transactions
• PEXA integration enabling e-conveyancing
• Closure of the SRO Customer Service Centre
• Refund applications online
220,000 property transfers in 2015/16
97% electronically through Duties Online
*ALL REQUIRING AT LEAST 1 PAPER BASED FORM
• Land Transfer (stamp) Duty is payable on VIC property purchases.
• All transfer information to allow an assessment of duty is captured in one of the SRO Duties paper forms. (*up to 62 different forms)
• In most cases the form/s is completed by the vendor and purchasers representative across multiple SRO forms, often duplicating information then signed by the vendor/purchaser prior to settlement.
• The information is then transposed from SRO forms and entered into Duties Online(DOL) and; used to facilitate the assessment/payment of land transfer duty.
Current State / Background
• SRO has commenced system development on a prototype to facilitate the capture of all SRO land transfer data.
• The ‘all in one’ online duties forms project will allow taxpayers or their representatives to complete vendor and purchaser related information electronically via an online application.
• Information from the online application will be linked and pre-populated into SRO systems (DOL).
• Replacing the cumbersome, duplicated, manual paper based forms which currently exist.
Project Overview
• Commonwealth, State and Territory Treasurers, have agreed to establish a National Register of Foreign Ownership of Land Titles. The register will be built on the Commonwealth’s existing National Register of Foreign Ownership of Agricultural Land.
• The Commonwealth has placed additional data requirements on SRO VIC as the ‘reporter’. These data requirements are subject to legislative amendments and SRO development of IT systems.
• Additional information will be required of vendors and purchasers on real property transfers including immigration and foreign entity data.
All in one forms drivers
All in one forms drivers (cont)PAPER BASED FORMS
• Prone to human error
• Create Red Tape
• Duplication of data
• Settlement failure
• Lack of control of private information (DOB, Visa, passport etc)
• Version control difficult
• Incorrect or unreliable data
COMMONWEALTH REPORTING REQUIREMENTS
• Establishment of a national register of foreign ownership of Land Titles
• For all transfers of freehold or leasehold interest in real property
• A secure solution for the collection of immigration data on behalf of the Commonwealth
• The amalgamation of the most common SRO Duties forms into one vendor and purchaser ‘all in one online form’
• Reduced duplication of data
• Pre-population of DOL/PEXA/Complex transactions
• Electronic signing by the vendor and purchaser – No longer a need for wet signatures
• Vendors representative and purchasers representative can see the common transaction data before signing. Reducing the chance of having inconsistent, incorrect or incomplete information when reaching settlement.
Key Features
• Secure collection and distribution (to the ATO) of immigration
information
• Reduced paperwork and double handling
• Reduces need for face to face settlement bookings
• Overall improved customer experience
Key Features (cont.)
Consolidated forms
VPT forms in scope
Form ID Form name
duties-form-01 Goods statement for residential land
duties-form-02 Goods statutory declaration
duties-form-03 Real property value declaration
duties-form-14 Statement on change of beneficial ownership of dutiable property
duties-form-62 Purchaser Statement
duties-form-53d PPR concession declaration
duties-form-53c PPR concession and eligible first home buyer duty reduction declaration 1/7/12 to 30/6/13
duties-form-61 PPR concession and eligible first home buyer duty reduction declaration on or after 1/7/13
duties-form-07e First home owner exemption/concession declaration
duties-form-08f Pensioner exemption/concession declaration
duties-form-09a Transfer between spouses/domestic partners statutory declaration
duties-form-12 Primary production and water entitlements (for all land types) statutory declaration
duties-form-56 Young Farmers Exemption/Concession Claim Form
duties-form-13 Family farm exemption statutory declaration
duties-form-04a Off-the-plan sales statutory declaration
duties-form-06a Transactions treated as sub-sales of land statutory declaration
• Multiple paper forms are completed by the vendor and purchasers representative; then
• Forms are manually signed by the vendor/purchaser prior to settlement.
• Duties forms are then given to the purchaser’s representative and a subset of this information is re-keyed
into Duties Online by external users for
close to 100% of duties transactions.
• The forms are then retained by DOL users.
Existing Process – Paper based forms
Process Model
• A new all-in-one online duties form will be mandatory in Victoria from 1 July 2017.
• Taxpayers and their representatives will be required to use the online form for all contracts or agreements for land transfer duty entered into, on or after this date.
• Paper-based forms are to be decommissioned following the launch of the online form .
Key Dates for Implementation
How to register to process Duties Forms
Starting the form
Transferor details
Transferor details (cont)
Inviting other representatives to complete the form
Email invitation to representative
Transferee details
Concession screen for Transferee
Requesting signatures from Transferor/Transferee
Inviting transferor/transferee to sign electronically
Inviting transferor/transferee to sign electronically
Manually signing
Manually signing
Claiming online form in DOL
Claiming online form in DOL
• Increased automation and improved data quality
• Reduced paperwork and double handling
• Removal of document retention storage costs
• Improved customer experience, reduced enquiries
• Reduced chance of settlement failure
• Lower cost of administration
Key Benefits
Housing Affordability Initiatives
Stamp Duty
• First home buyers purchasing properties with dutiable value up to $600,000 exempt from stamp duty
• Duty phased-in for eligible first-home buyers who purchase a home between $600,001 and $750,000
• Off the plan concession will only apply to buyers who occupy property as their PPR
• Will apply for contracts entered into from 1 July 2017
First Home Owner Grant
• Increased FHOG from $10,000 to $20,000 for new homes built in regional Victoria and valued up to $750,000
• Will apply for contracts signed from 1 July 2017 to 30 June 2020
• Eligible first-home buyers of new homes in metropolitan Melbourne will continue to receive the $10,000
Vacant Residential Property Tax
• Levied on dwellings that are vacant for more than a total of six months in a calendar year
• Inner and middle areas of Melbourne
• Self-reporting
• 1% of the property’s CIV, payable on a calendar-year basis
• Exemptions: holiday homes, a city unit for work purposes, deceased estates and legitimate temporary absences
• Will apply from 1 January 2018
CONVEYANCING TRANSFORMED | END TO END E-CONVEYANCING HAS ARRIVED
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